Group says Aviation Tax is Hurting Illinois

During the first meeting of its kind, The Chicago Area Business Aviation Association (CABAA) invited several political officials from the State of Illinois to attend their October 21st meeting held in West Chicago / Dupage Airport (DPA) at a corporate hangar located on the field.

Ed Green, vice president and general manager of the Springfield-based Garrett Aviation Service Centers, gave a presentation which urged lawmakers to abolish state aviation sales tax including that on aviation maintenance and explained how the current tax code is hurting Illinois. “You have a mobile product”, Green said, “they can go anywhere to get maintenance done”.

Under the current 7% sales tax, an aircraft using an Illinois repair station for major maintenance items such as engine overhaul or phase checks, could easily see upwards of $15,000 in additional expense due to the tax. The same is true for aircraft purchases which would add an even higher amount to the bottom line, which in turn prompts corporations and individuals to go elsewhere to purchase their aircraft.

Green then went on to show the group several examples of corporate flight departments who have located elsewhere to avoid the tax, thus costing Illinois jobs and commerce, not to mention the added value of having a major corporation headquartered in the state.

Prior to Green’s presentation, CABAA asked several of the politicians in the audience to introduce themselves. Dr. Susan Shea, Director for the Illinois Department of Transportation, Division of Aeronautics, took the podium with a brief introduction of her background and area of responsibilities, including that of dispersing federal dollars to Illinois airports for maintenance and modernization. She expressed a sincere interest in hearing from any of the 75 attendees concerning issues she could take to capitol hill or if they had a “wish list” of upgrades they’d like to see at their local airports.

Then Senator Steven Rauschenberger (R-Elgin) who is also a 2006 GOP Illinois Gubernatorial Candidate, said a few words and showed his support of general aviation. During his address, Rauschenberger denounced the midnight destruction of Chicago’s Meigs Field calling Mayor Richard Daley’s actions “irresponsible politics” which earned him resounding applause. His message also conveyed the importance of patience and persistence when championing new legislation or opposing potential new restrictions with regards to aviation and aerospace in Illinois.

CABAA’s President, Rick Milburn felt the meeting was a huge success stating that their progress was “a giant step forward in establishing a mutually beneficial interface between our members and Illinois officials and policymakers”. With several major corporate flight department managers and airport directors in attendance, the consensus echoed Milburn’s thoughts and CABAA members are looking forward to future meetings of it’s kind.

The Chicago Area Business Aviation Association is a nonprofit organization created to provide an interface among aviation professionals and the policymakers and officials whose decisions effect the operations of their membership. Members meet once a month to discuss association business, observe progress within the different subcommittees, and learn valuable information through educational presentations in various aviation disciplines.

FMI: www.cabaa.com